If the inflation rate is 10 percent, what is a bank's real rate of return on a loan of $100 at 10 percent interest?

• $100
• $10
• 10 percent
• 0 percent

One effect of a usury law is that it will

• benefit lenders.
• penalize borrowers.
• increase the efficiency of investment.
• subsidize borrowers with high incomes.

Average per capita water consumption in the United States was approximately how many gallons per day in 2010?

• 355
• 764
• 1,941
• 1,134

The user cost of extracting a nonrenewable resource is

• inversely related to how much of the resource remains.
• directly related to how much of the resource remains.
• unrelated to how much of the resource remains.
• inversely related to the expected future price of the resource.

Negative externalities from energy production should be considered when comparing the cost of an energy source, because they

• improve energy production.
• reduce the total costs of production.
• are an additional cost of using that source.
• are taxed or subsidized by government to encourage production.

If a country's replacement rate is two births per woman and its total fertility rate is four births per woman, the country's population will decline.

True / False

Petroleum is the largest source of electric energy generated in the U.S.

True / False

Optimal resource allocation involves considering current and future uses, benefits, and costs.

True / False

In the extraction of a nonrenewable resource, increased current extraction will reduce the extraction firm's user costs.

True / False